ASIC today welcomed the release of the ASX’s updated continuous disclosure rules and guidance.

The ASX and ASIC share the responsibility for regulating the continuous disclosure framework that applies to ASX-listed entities, and worked closely and cooperatively together to develop the updated rules and guidance.

‘Continuous disclosure by listed companies is a bedrock of market integrity. It is essential to maintaining fair and efficient markets and helps investors make confident and informed decisions,’ ASIC Commissioner John Price said.

‘Good continuous disclosure is about preparation and having the right systems in place, particularly as we venture deeper into the age of social media and the instantaneous sharing of information.

‘All listed companies should know what, how and when to disclose. But continuous disclosure issues can sometimes be difficult, and judgment calls can be required. We are confident the updated guidance will help companies.’

When confronted with potential continuous disclosure breaches ASIC can pursue a variety of enforcement remedies, including issuing infringement notices. One factor ASIC may take into account in deciding whether to take action is the nature and seriousness of the conduct of the company that contributed to the potential breach including the compliance approach of the company (refer: Information Sheet 151 ASIC’s approach to enforcement).

‘Companies that carefully consider the updated guidance and adopt appropriate processes with the benefit of that guidance can minimise the risk that ASIC will seek to take continuous disclosure enforcement action against them,’ Mr Price said.

ASIC notes that the updated rules were lodged with ASIC today. The Minister has a power to disallow the rule changes under s793E of the Corporations Act 2001.

Unless disallowed, ASIC understands the ASX will have the updated rules and the guidance note come into effect on or around 1 May 2013.